CEO Pay and What to Do about It : Restoring Integrity to Both Executive Compensation and Capital-Market Relations, by Jensen, Michael C.
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- ISBN: 9781422101179 | 1422101177
- Cover: Hardcover
- Copyright: 8/2/2016
In this book proposes a whole new system for incenting managers to act in the best interests of company owners. Reversing his earlier position-that companies probably weren't paying enough to attract the best executive talent-Jensen and his coauthors are now positing that, in fact, pay packages can be too high and too risk-free, causing otherwise highly talented managers to act in ways that destroy corporate value.The authors have identified the critical missing link in current incentive plans, namely that link between a manager's effectiveness in executing strategy and the capital market's valuation of the results, which they call strategic value accountability. They explain how it works and how to devise a plan that holds top managers accountable for creating long-term strategic value.